Yes, This Happened

I recently saw a Facebook image post where someone was cashing out $240K from Coinbase and claimed to have only started with $15K. Of course people were in disbelief. How is this possible?

Well, welcome to the world of crypto, DeFi, and speculation where we make Robinhood look like a childs game. Where it seems millions are lost and created regularly but watch out for the rug pulls and scams.

This scenario was completely possible depending on when they started and what they bought. I know a guy who turned $40K into $1mil in about one years time last year. If you can get 300% return a few times on very speculative cryptos in DeFi it’s feasible or at least was in the beginnings of DeFi.

This original post is only about 200% 4 times or 1,600% once. You might not believe it but this was happening.

As an example, take LEND in Jan 2020 was $0.02 and turned into AAVE at a ratio of 1 AAVE : 100 LEND. So AAVE equivalent price would have been $2 which recently hit a high of about $575 which would be about 287,000%. These are the kind of returns that usually only venture capitalist see from IPOs. If you'd bought LEND with $15K that by itself would have been $4.3 million; if there was that much available to buy. Mark Cuban is sitting on just under half a million in AAVE. This was just one of the many crypto which saw awesome gains over the last year in this current bull run. Finding gems like these can be difficult among the vast number of 'shit coins'. Like many defunct companies, many cryptos will eventually hold no value which should be considered when participating in the space.

Those with an understanding of tokenomics with a technical knowledge base have an advantage in understanding the space. Those kind of gains are now likely gone although opportunity likely still exists in this bull run but with higher risk. Unfortunately timing an exit strategy can be difficult especially when considering tax obligations.

The bad part is, with those kind of gains, the individual either got lucky or likely had multiple transactions and each would have likely been a short term taxable gain event depending on the length they held the crypto. They definitely should have this windfall reviewed with crypto tax software and CPA before spending a dime.

Site for reference for Crypto research. https://www.coingecko.com

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